11 10 ili Body Text Heading 1 1 No Spac... 1 Normal 1 Table Pa.. Paragraph Styles 9. Retirement Plan - Troy Metals Inc. Maximum Points: 10 Jaylen would like to start maximizing retirement savings by establishing an employer-sponsored retirement plan for Troy Metals Inc. Additional objectives for the plan are to retain and reward current full-time employees of the business while maintaining cash flow flexibility. Jaylen has narrowed the choices for a retirement plan to the following options and has asked you to give your recommendation State which plan you recommend and why, providing at least two cons for each of the plans you don't recommend and three pros for the plan you do recommend. A SIMPLE IRA B. simplified employee pension (SEP) C. safe harbor 401(k) D. target benefit I 40 Cetata lindi Mi Drino BE e Study Facts1.pdf?_ga=2131116813344223453.1629121815-1943489389.160262660 - 110% + 10 Jayler anu Avery ICRSON Jaylen and Avery Jackson have come to you, a financial planner, for help in developing a plan to accomplish their financial goals. You are a Series 7 general securities representative and hold insurance licenses for life and health insurance and variable contracts. The Jacksons have great hope for their future. However, after having a conversation about investing with one of their neighbors, they have recently realized that they are not as financially comfortable as they would like to be at this point in their lives. They began reading about various financial planning services and have decided to consult with you. Assume today is January 1, 2021. PERSONAL BACKGROUND AND INFORMATION The Jacksons Jaylen and Avery have been married for 15 years. They have two children, Ashanti and Blake. Jaylen Jackson (Age 49) Jaylen is the founder and sole stockholder of Troy Metals Inc., a corporation, and has an annual salary of $64,000. Jaylen's health is good. Avery Jackson (Age 49) Avery is an office manager at Davis Manufacturing and has an annual salary of $40,000. Avery's health is excellent They expect their incomes to keep up with inflation Children Ashanti, 14 years old, is in the ninth grade at Brown Road High School, a public school. Ashanti plays soccer in a community league and attends soccer camp in the summer. Ashanti also attends the school's Future STEM Career club. Blake, 9 years old, is in fourth grade at Prairie Hills Elementary School, a public school, Blake meets with a private tutor once a week to get help with reading skills and would like to start taking violin lessons ECONOMIC INFORMATION Currently, the economy is in a recovery phase with decreasing unemployment and increasing economic growth. Inflation and interest rates are currently low. The current GDP has been growing at 3%. There has been a lot of speculation about the Federal Reserve raising interest rates to be better prepared to fight a future recession e Business Applications 3 16 - 110% + 10 INCOME TAX CONSIDERATIONS The Jacksons tell you that they think they are in the 12% federal income tax bracket. They pay $3,120 annually in state and local income taxes. RETIREMENT INFORMATION Jaylen and Avery would like to retire at age 65 (16 years from today). They expect their living expenses in their first year of retirement to be equivalent to 75% of their current earned income (as adjusted for inflation). They assume their life expectancy in retirement will be 30 years. They intend to claim Social Security benefits at age 65. They consulted the Social Security Administration website and determined their monthly retirement benefits at FRA would be $2,500 (in today's dollars) for Jaylen and $1,800 (in today's dollars) for Avery Jaylen does not have any retirement accounts. Avery is eligible to participate at the retirement plan at Davis Manufacturing, but has opted out. EDUCATION INFORMATION It currently costs $12,000 per year to attend a state college, and this cost is expected to increase at 5% each year. The Jacksons would prefer to save monthly for this goal. They did some research online and learned they can earn 7% in their state's 529 account. ESTATE PLANNING INFORMATION Wilts were tast completed five years ago. They live in a common-law state, Jaylen's will leaves everything to Avery conditioned on a six-month survivorship clause-otherwise, equally in separate trusts for the two children. Avery's will is identical to Jaylen's, leaving everything to Jaylen as long as he survives her by at least six months. Otherwise, a trust for the children will hold their assets BUSINESS INFORMATION Jaylen is 100% owner of Troy Metals inc. The company has been in business for 14 years, is financially stable, and currently has a book value in excess of $1 3 million. In view of the company's profitability and Jaylen's middle age, the firm's accountant suggested it might be time to establish an employer. e Business Applications 11 10 ili Body Text Heading 1 1 No Spac... 1 Normal 1 Table Pa.. Paragraph Styles 9. Retirement Plan - Troy Metals Inc. Maximum Points: 10 Jaylen would like to start maximizing retirement savings by establishing an employer-sponsored retirement plan for Troy Metals Inc. Additional objectives for the plan are to retain and reward current full-time employees of the business while maintaining cash flow flexibility. Jaylen has narrowed the choices for a retirement plan to the following options and has asked you to give your recommendation State which plan you recommend and why, providing at least two cons for each of the plans you don't recommend and three pros for the plan you do recommend. A SIMPLE IRA B. simplified employee pension (SEP) C. safe harbor 401(k) D. target benefit I 40 Cetata lindi Mi Drino BE e Study Facts1.pdf?_ga=2131116813344223453.1629121815-1943489389.160262660 - 110% + 10 Jayler anu Avery ICRSON Jaylen and Avery Jackson have come to you, a financial planner, for help in developing a plan to accomplish their financial goals. You are a Series 7 general securities representative and hold insurance licenses for life and health insurance and variable contracts. The Jacksons have great hope for their future. However, after having a conversation about investing with one of their neighbors, they have recently realized that they are not as financially comfortable as they would like to be at this point in their lives. They began reading about various financial planning services and have decided to consult with you. Assume today is January 1, 2021. PERSONAL BACKGROUND AND INFORMATION The Jacksons Jaylen and Avery have been married for 15 years. They have two children, Ashanti and Blake. Jaylen Jackson (Age 49) Jaylen is the founder and sole stockholder of Troy Metals Inc., a corporation, and has an annual salary of $64,000. Jaylen's health is good. Avery Jackson (Age 49) Avery is an office manager at Davis Manufacturing and has an annual salary of $40,000. Avery's health is excellent They expect their incomes to keep up with inflation Children Ashanti, 14 years old, is in the ninth grade at Brown Road High School, a public school. Ashanti plays soccer in a community league and attends soccer camp in the summer. Ashanti also attends the school's Future STEM Career club. Blake, 9 years old, is in fourth grade at Prairie Hills Elementary School, a public school, Blake meets with a private tutor once a week to get help with reading skills and would like to start taking violin lessons ECONOMIC INFORMATION Currently, the economy is in a recovery phase with decreasing unemployment and increasing economic growth. Inflation and interest rates are currently low. The current GDP has been growing at 3%. There has been a lot of speculation about the Federal Reserve raising interest rates to be better prepared to fight a future recession e Business Applications 3 16 - 110% + 10 INCOME TAX CONSIDERATIONS The Jacksons tell you that they think they are in the 12% federal income tax bracket. They pay $3,120 annually in state and local income taxes. RETIREMENT INFORMATION Jaylen and Avery would like to retire at age 65 (16 years from today). They expect their living expenses in their first year of retirement to be equivalent to 75% of their current earned income (as adjusted for inflation). They assume their life expectancy in retirement will be 30 years. They intend to claim Social Security benefits at age 65. They consulted the Social Security Administration website and determined their monthly retirement benefits at FRA would be $2,500 (in today's dollars) for Jaylen and $1,800 (in today's dollars) for Avery Jaylen does not have any retirement accounts. Avery is eligible to participate at the retirement plan at Davis Manufacturing, but has opted out. EDUCATION INFORMATION It currently costs $12,000 per year to attend a state college, and this cost is expected to increase at 5% each year. The Jacksons would prefer to save monthly for this goal. They did some research online and learned they can earn 7% in their state's 529 account. ESTATE PLANNING INFORMATION Wilts were tast completed five years ago. They live in a common-law state, Jaylen's will leaves everything to Avery conditioned on a six-month survivorship clause-otherwise, equally in separate trusts for the two children. Avery's will is identical to Jaylen's, leaving everything to Jaylen as long as he survives her by at least six months. Otherwise, a trust for the children will hold their assets BUSINESS INFORMATION Jaylen is 100% owner of Troy Metals inc. The company has been in business for 14 years, is financially stable, and currently has a book value in excess of $1 3 million. In view of the company's profitability and Jaylen's middle age, the firm's accountant suggested it might be time to establish an employer. e Business Applications